Aztec: Expensive growth - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Aztec: Expensive growth

Apr 10, 2001

Aztech has posted a whopping 476% growth in topline for FY01 compared to FY00. The rise in net profits is 390%. The astronomical figures are due to the low revenue base of the company. The growth has been at the sacrifice of almost 1000 basis points in the operating margins. The company has incurred additional costs of sales commissions and onsite consultancy charges for FY01 which were not there in FY00. This has added about 30% (of revenues) to the expenses. Aztec has controlled cost on other front like the employee costs for FY01 have come down to 16% from 25% in FY00. Also the subcontractor costs have been cut to almost half (as a percentage of revenues) by the company.

(Rs m) 3QFY01 4QFY01 Change FY00 FY01 Change
Sales 224 245 9.7% 137 789 476.1%
Other Income 8 3 -66.2% 1 11 1212.5%
Expenditure 166 179 8.0% 84 568 572.7%
Operating Profit (EBDIT) 58 66 14.8% 53 221 320.8%
Operating Profit Margin (%) 25.7% 26.9%   38% 28%  
Interest 1 1 0 1 5 264.3%
Depreciation 7 7 0 10 23 116.3%
Profit before Tax 57 60 0 42 204 391.1%
Tax 2 0 -1 0 2 475.0%
Profit after Tax/(Loss) 55 60 0 41 202 390.3%
Net profit margin (%) 24.8% 24.5%   30% 26%  
Diluted number of shares 40.4 40.4   40.4 40.4 0.0%
Diluted Earnings per share* 5.5 6.0 8.5% 1.0 5.0 390.3%
*(annualised)            
P/E (X) 10.8 9.9   58.0 11.8  

The companies QoQ growth figures for 4QFY01 are low compared to 3QFY01 growth figures. The company has registered a revenues growth of just 9.7% compared to 23% in 3QFY01. However, the operating margins have improved slightly on a sequential basis. The YoY growth figures for 4QFY01 compared to 4QFY00 are 208% growth in topline and 109% growth in bottomline.

At a current market price of Rs 59, the stock is trading at a P/E multiple of 12 times if FY01 earnings.

Equitymaster requests your view! Post a comment on "Aztec: Expensive growth". Click here!

  

More Views on News

Birlasoft Hits 52-week High as Company Signs AI Partnership (Views On News)

Jun 9, 2021

The stock has rallied 350% in the last year. Is there more steam left?

What's Behind the Rally in Wipro Shares? (Views On News)

May 31, 2021

Wipro shares outperforms TCS and Infosys over the past year. Is the rally justified?

Happiest Minds Q4 Results: Profit Grows Over Six-Fold; Company Eyes 20% Organic Growth in FY22 (Views On News)

May 14, 2021

Key takeaways from Happiest Minds Technologies Q4FY21 results.

L&T Technology Shares Fall After Q4 Results. What Should Investors Do? (Views On News)

May 5, 2021

Despite strong deal wins and a low base in FY21, a big turn-off for investors was the muted FY22 revenue growth guidance.

Tech Mahindra Shares Fall After Q4 Results. What Should Investors Do? (Views On News)

Apr 27, 2021

Tech Mahindra forecasts double digit growth driven by strong demand from clients.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK AZTECSOFT

  • Track your investment in AZTECSOFT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS